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SINGAPORE : It's the start of a new chapter in the Singapore stock market as the revamped Straits Times Index (STI) kicks off on Thursday.
The new FTSE STI is now slimmer - with just 30 component stocks instead of nearly 50.
18 new indices were also created to better reflect the performance of various sectors.
This is the first major revamp in the STI in almost a decade.
In 1998, the 30-stock Straits Times Industrials Index made way for the 55-component STI. This time, it is the reverse.
Said Mark Makepeace, Chief Executive of FTSE Group: "The new indices, by tracking the different sectors of the Singapore market, will help investors make better decisions, and it will become the basis for many new structured products and index funds.
"The new indices will adopt FTSE's international industry classification system ICB. The use of the ICB will facilitate easier and more accurate cross-border analysis and comparisons."
Analysts said the change will create more visibility, not just for the component stocks, but Singapore stocks as a whole.
"For us, it went very well; we didn't have any problems on the Saxo Trader. We will have a much better ability to track the performance of the Singapore market going forward, and this is great because it will also attract international investors to the Singapore market," said Christoffer Moltke-Leth, Senior Manager, Head of Sales Trading, Saxo Capital Markets.
But according to some reports, some traders using the new GL Trade system could not access real-time quotes.
That was because stockbroking firms needed to first obtain the service from GL Trade with additional charges.
The Singapore Exchange (SGX) said the index data is offered free and is available real-time on brokers' websites and traders' terminals. - CNA /ls
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